Nigeria has divided the OPL 245 oil block into four separate assets that will be operated by Eni and Shell, according to a source who spoke to Reuters.
The move could finally determine the future of a field that has been at the center of one of the oil industry’s most high-profile corruption trials.
The agreement paves the way for development of OPL 245, one of Nigeria’s largest deepwater oil reserves, which has remained undeveloped for nearly 30 years due to overlapping legal battles across several countries.
Final contracts are expected to be signed starting Monday, the source said.
The Nigerian government has for years indicated it wanted a resolution that would allow production to begin.
The source requested anonymity because they are not authorized to speak publicly on government policy ahead of an official announcement.
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The block was originally awarded in 1998 to Malabu, a company linked to former Nigerian oil minister Dan Etete. The licence was later sold to Shell and Eni.
Italian prosecutors later alleged that much of the $1.3 billion paid for the OPL 245 licence was diverted to politicians and intermediaries.
The two European energy companies, along with several former and current executives, including Eni CEO Claudio Descalzi, were tried in Italy. All defendants were acquitted in 2021 after denying any wrongdoing.
Eni and Shell declined to comment on the latest development. Shell and Nigeria’s state-owned oil company, NNPC, also had no immediate comment.
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Image Credit: Oil Price
